US President Barack Obama said that Washington is filing a complaint against China before the WTO due to China’s government setting prices for wheat, corn and rice well above market levels, which has led to unfair government subsidies in violation of WTO rules.So the Chinese government sets a higher fake price for these commodities than the US Government does. Both do it. Setting higher prices calls forth more of these commodities, which in turn are then dumped at lower prices than what it cost to bring them forth. You can focus on that if you like, but please do note the explicit fact that ex nihilo credit, that facilitates all this, calls forth goods and services that no free market would call forth. Again and again we see how this happens, but at no point does anyone (except me apparently) question the ex nihilo credit regime that facilitates this malinvestment and misallocation. Everyone loves a system that might work for them. No matter how much it harms them.
What the Chinese are doing is taking precisely the same steps USA took to become the Hegemon. USA as a Hegemon is failing for it has run some course which is ending. It shows up in our military failures worldwide, our odious leaders, and the biggest beneficiaries of the ex nihilo credit regime, the dinosaur corporations. But that does not stop the 1%'rs from doubling down:
The US president added that if the United States signed on to the Trans-Pacific Partnership (TPP) free trade agreement, it would expand export opportunity for farmers and businesses and set rules for holding our trading partners accountable.To hold our trading partners accountable? Before China joined the WTO, it was rules everyone haad to follow except the USA. Now that China is trading as much as USA, the WTO is useless to USA (so Trump can announce he'll leave it), and USA wants to peel off smaller victims in a new org, the TPP. it ain't selling.
This is all great news, for once the ex nihilo credit regime dies, or implodes, we can get back to real business, true economy stuff. And non-issues like "dumping?" Well, anyone with a wheat market in USA can simply reduce USA supply and by the subsidized China wheat to sell in USA until China goes broke. Let our fields lie fallow and rest while China slowly dies (assuming dumping is actually happening.
All this is great news for small business. That which distresses USA big business is advantageous for small business. The pendulum is swinging back.
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